Markets continue to show strength; Realty, Oil & Gas lead

Benchmark indices continued their rally extending gains and are hovering near day’s high in the late afternoon session supported by global cues along with strong buying in blue chip counters. The sentiment got some support after rupee appreciated against the US dollar in early trade tracking positive trading in most Asian currency. Traders were seen piling position in Realty, Oil & Gas and Capital Goods stocks while selling was witnessed in Power sector stocks. In scrip specific development, Motherson Sumi Systems was trading firm on reporting robust Q4 results. The company’s consolidated net profit rose 22% to Rs 414 crore on 8% growth in revenue to Rs 10,068 crore in Q4 March 2016 over Q4 March 2015. Sun TV Network was trading in green as most exit polls have predicted that the DMK-Congress alliance may win the state elections in Tamil Nadu. Chennai-based Sun TV owned by Kalanithi Maran (grandnephew of DMK President M Karunanidhi) is seen gaining high revenue growth when DMK is in power. Sobha was trading in green after the company stated that its board will consider a proposal for buyback of equity shares at the meeting scheduled on May 19, 2016. On the other hand, Tata Coffee was trading in red after the company posted a 12.55 percent fall in consolidated net profit in fourth quarter of 2015-16 fiscal.

On the global front, the Asian markets were trading mostly in green while the European markets traded on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 7,900 and 25,800 levels respectively. The market breadth on BSE was positive in the ratio of 1367:1102 while 164 scrips remained unchanged.

The BSE Sensex is currently trading at 25878.76, up by 225.53 points or 0.88% after trading in a range of 25741.19 and 25900.18. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.41%, while Small cap index up by 0.46%.

The gaining sectoral indices on the BSE were Realty up by 1.75%, Oil & Gas up by 1.44%, Capital Goods up by 1.16%, Auto up by 1.14%, Consumer Durables up by 0.89% while, Power down by 0.33% was the only losing index on BSE.

The top gainers on the Sensex were ONGC up by 4.17%, HDFC up by 3.34%, Axis Bank up by 3.07%, Mahindra & Mahindra up by 2.33% and Maruti Suzuki up by 1.90%.

On the flip side, NTPC down by 2.68%, Hindustan Unilever down by 1.55%, Adani Ports &Special down by 0.59%, Bharti Airtel down by 0.42% and HDFC Bank down by 0.09% were the top losers.

Meanwhile, telecommunication companies have urged the Telecom Regulatory Authority of India (Trai) to lift its ban on discriminatory pricing of data services, stating that the clause that exempts products offered over closed electronic communication network (CECN), or intranet, has created confusion and can lead to futile investments for carriers. Cellular Operators Association of India (COAI), the GSM industry body has said that the regulator has failed to provide clarity over what a host of issues pertaining to CECN, including what exactly is CECN.

COAI has asked Trai to review its decision of the CECN network and allow differential tariffs on the basis of content irrespective of whether such content is provided through the closed network or open internet.  The request comes within three months of the telecom regulator disallowing discriminatory pricing of data services, effectively prohibiting controversial zero-rated products such as Facebook's Free Basics and Airtel Zero with a maximum Rs 50 lakh penalty for violators.

The COAI in its latest letter has sought clarity from regulator on two aspects. Firstly, whether a telecom service provider could share advertising revenue with a content provider who is providing 'exclusive' content to the telco's subscribers at a subsidized rate. Secondly, whether a content provider could offer subsidized subscription of its content to select or all subscribers of any telecom operator, will that constitute a CECN.

The CNX Nifty is currently trading at 7921.50, up by 60.75 points or 0.77% after trading in a range of 7889.20 and 7933.60. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were ONGC up by 4.02%, HDFC up by 3.50%, Axis Bank up by 3.02%, Ultratech Cement up by 2.70% and Mahindra & Mahindra up by 2.52%.

On the flip side, NTPC down by 2.71%, Hindustan Unilever down by 1.57%, Aurobindo Pharma down by 0.98%, Eicher Motors down by 0.92% and Tata Motors - DVR down by 0.85% were the top losers.

The Asian markets were trading mostly in green; KOSPI Index increased 0.15 points or 0.01% to 1,968.06, FTSE Bursa Malaysia KLCI increased 12.5 points or 0.77% to 1,633.71, Taiwan Weighted increased 72.88 points or 0.9% to 8,140.48, Nikkei 225 increased 186.4 points or 1.13% to 16,652.80 and Hang Seng increased 234.85 points or 1.18% to 20,118.80.

On the other hand, Jakarta Composite decreased 11.79 points or 0.25% to 4,719.77 and Shanghai Composite decreased 7.18 points or 0.25% to 2,843.68.

The European markets were trading in green; UK’s FTSE 100 increased 58.94 points or 0.96% to 6,210.34, France’s CAC increased 42.73 points or 0.99% to 4,355.01 and Germany’s DAX increased 96.42 points or 0.97% to 10,049.32.